Japan Ferrous Scrap Demand Rises by 5.1% in March

Japanese ferrous scrap consumption increased by 5.1% to 2.269 million tonnes in March from February, according to Japan Ferrous Raw Materials Association. The consumption at converter, electric furnace and casters increased from February but the demand was still low level due to major production cut by steel makers under very slow steel demand.

The scrap consumption increased by 12.7% to 548,000 tonnes at converter and by 11% to 301,000 tonnes at casting operations in March from February. The demand decreased by 1% to 1.34 million tonnes at electric furnace.

Japanese steel makers keep major production cut since late 2008 due to demand slump. Under the production cut, domestic scrap demand keeps very low level and Japanese steel makers’ consumption keeps less than 3 million tonnes per month since December 2008.

Scrap supply decreased by 0.6% to 2.305 million tonnes in March from February, which decreased for 5 months in a row. The supply decreased by 4.5% to 1.459 million tonnes from the market while the supply from steel makers’ plants increased by 6.9% to 846,000 tonnes.